Friday Forecasting
Capital Gains Tax Scenarios and Analyses Executive Summary This analysis explores a proposed capital gains tax structure-15% flat rate for foreign/non-qualifying gains and tiered rates for U.S. domestic stocks (7.5% for 1-3 years, 5% for 3-5 years, 2.5% for 5-10 years, 0% for 10+ years, with no NIIT)-evaluated under diverse economic scenarios tied to Trump’s tariff policies as of April 2025. Starting with a static revenue loss of $10.025 billion annually ($100 billion gains baseline), the study employs static and dynamic scoring to assess fiscal impacts, ranging from optimistic tariff-driven growth to severe recessionary shocks, culminating in a V-shaped recovery scenario.…